Sources close to the government have termed projections of $1 trillion in exports for FY 2025-26 by a section of exporters as “too optimistic” amid ongoing global uncertainty. Describing the goods export forecast as difficult in the current environment, sources pegged the export estimate for the fiscal year at $900 billion, backed by a gradual rise in both value and volume of shipments, as well as entry into new markets.The revised estimate would represent a 9.1% year-on-year increase from the $824.9 billion recorded in FY 2024-25, compared with the 21% growth projected by the Federation of Indian Export Organisations (FIEO) late last month.
In FY 2024-25, India’s services exports rose 13.6% year-on-year to $387.5 billion, while merchandise exports grew 6% to $437.4 billion. FIEO attributed the growth in services exports to strong performance in IT, business, financial, and travel-related services.
FIEO’s projection for FY 2025-26 includes 12% growth in merchandise exports, estimated at $525–$535 billion, and 20% growth in services exports, reaching $465–$475 billion.Among its recommendations to boost export performance, FIEO highlighted the need for diversification of export markets, promotion of value-added products, strengthening of free trade agreements, enhancement of export competitiveness, support for small and medium enterprises (SMEs), and adoption of digital technologies.The organisation also urged the government to set up sector-specific task forces and help MSMEs implement traceability and product lifecycle management systems. In addition, it called on the MSME Ministry and export promotion councils to run capacity-building programs to educate exporters on product sustainability, digital traceability tools, and compliance with EU regulations.Also Read: FTA with Switzerland, Norway, Iceland, Liechtenstein likely to come into effect by Sep 2025: Piyush Goyal(Edited by : Poonam Behura)First Published: Jun 10, 2025 2:45 PM IST
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